Seabridge Gold Receives its KSM Substantially Started Designation from the BC Government

Rhea-AI Summary

Seabridge Gold (TSX: SEA) (NYSE: SA) announced that its subsidiary, KSM Mining ULC, has received a 'substantially started' designation from the BC Government for its KSM Project. This designation affirms the validity of the BC Environmental Assessment Certificate (EAC) for the project's lifetime, overriding the original July 29, 2026 expiry date.

The company has invested over $1 billion in the KSM Project since 2001, with more than $800 million spent after receiving the EAC in July 2014. This milestone positions KSM to become a significant economic contributor to northwestern BC and supports the development of critical mineral supply chains for North America's technology, defense, and security needs.

Seabridge Gold's CEO, Rudi Fronk, emphasized the regulatory significance of this decision and its potential to facilitate joint venture discussions for the KSM Project.

Positive

• Received 'substantially started' designation, affirming EAC validity for the project's lifetime
• Over $1 billion invested in the KSM Project since 2001
• Positions KSM to become a major economic contributor to northwestern BC
• Supports development of critical mineral supply chains for North America
• Facilitates joint venture discussions for the KSM Project

Negative

• None.

Insights

Mining Industry Analyst

The BC Government's 'substantially started' designation for Seabridge Gold's KSM Project is a significant milestone with far-reaching implications for the company and the mining sector. This decision effectively secures the project's Environmental Assessment Certificate (EAC) indefinitely, removing a major regulatory hurdle and uncertainty.

The $1 billion investment since 2001, with $800 million spent post-EAC issuance, demonstrates Seabridge's substantial commitment to the project. This level of investment is uncommon for pre-production mining projects and underscores the company's confidence in KSM's potential.

From an industry perspective, this designation sends a strong signal about British Columbia's support for responsible mining projects, particularly those focused on critical minerals. The emphasis on KSM's large copper reserve aligns with the growing demand for copper in renewable energy technologies and electric vehicles, positioning Seabridge favorably in the green economy transition.

The backing from various Indigenous groups and local communities is a important factor that often determines the success or failure of mining projects in Canada. This broad support base significantly de-risks the project from a social license standpoint.

For investors, this regulatory assurance could be a catalyst for advancing joint venture discussions, potentially leading to partnerships that could help finance the project's development. However, it's important to note that despite this positive development, the path to production for large-scale mining projects like KSM remains long and capital-intensive.

Environmental Policy Expert

The 'substantially started' designation for Seabridge Gold's KSM Project represents a delicate balance between resource development and environmental stewardship in British Columbia. This decision effectively extends the Environmental Assessment Certificate (EAC) indefinitely, which is a significant regulatory endorsement.

From an environmental policy perspective, this move indicates the BC government's confidence in the project's ability to meet stringent environmental standards. However, it also raises questions about the long-term environmental implications of such large-scale mining operations in ecologically sensitive areas.

The emphasis on KSM's potential contribution to the critical mineral supply chain, particularly copper, aligns with broader climate action goals. Copper is essential for renewable energy infrastructure and electric vehicles. However, this also highlights the paradox of needing resource extraction to support green technologies.

The support from Indigenous groups, including the Nisga'a and Tahltan Nations, suggests a level of confidence in the project's environmental and social governance. This aligns with the growing trend of meaningful Indigenous participation in resource development projects.

For policymakers and stakeholders, this decision sets a precedent for how large-scale, long-term mining projects are evaluated under environmental assessment frameworks. It underscores the need for robust, adaptive environmental management plans that can evolve over the multi-generational lifespan of such projects.

While this designation provides regulatory certainty, it also places a significant onus on Seabridge to maintain high environmental standards throughout the project's life cycle, potentially setting a new benchmark for the industry.

Toronto, Ontario--(Newsfile Corp. - July 26, 2024) - Seabridge Gold (TSX: SEA) (NYSE: SA) announced today that its wholly owned subsidiary, KSM Mining ULC ("KSM Co"), has received its "substantially started" designation from the BC Government for its 100% owned KSM Project. This designation affirms the validity of the BC Environmental Assessment Certificate ("EAC") for the life of the KSM Project.

Under the B.C. Environmental Assessment Act, a project's EAC expires if the project has not been substantially started by the deadline specified in its EAC. However, the B.C. Minister of Environment and Climate Change Strategy may determine that a project has been 'substantially started' before the deadline, in which case the EAC is no longer subject to expiry. KSM's EAC deadline was July 29, 2026. KSM Co. has spent over $1 Billion since acquiring the KSM Project in 2001, of which in excess of $800 Million has been spent to advance the project after the issuance of the EAC in July 2014.

Seabridge Chairman and CEO Rudi Fronk stated: "This is a significant regulatory milestone for the KSM Project, positioning it to become a multigenerational economic anchor for northwestern BC. We thank the Government of British Columbia, and especially the Environmental Assessment Office, for their recognition of the significant work already completed at KSM. This decision reaffirms BC's support of responsible mining projects and the development of a stronger critical mineral supply chain needed for effective climate action. KSM's large copper reserve can contribute to meeting North America's technology, defense, and security objectives while the project can also promote the economic wellbeing of our Indigenous partners. We greatly appreciate the support that we received from the Nisga'a and Tahltan Nations, the Gitxsan Hereditary Chiefs Office, the Village of Hazelton, the District of New Hazelton, the Town of Smithers, the District of Stewart, the City of Terrace, the Regional District of Kitimat-Stikine, B.C. Hydro and the Mining Association of British Columbia."

Mr. Fronk concluded: "This decision provides the regulatory assurance we have needed to move forward with joint venture discussions for the KSM Project."

About Seabridge Gold

Seabridge holds a 100% interest in several North American gold projects. Seabridge's assets include the KSM and Iskut projects located near Stewart, British Columbia, Canada, the Courageous Lake project located in Canada's Northwest Territories, the Snowstorm project in the Getchell Gold Belt of Northern Nevada and the 3 Aces project set in the Yukon Territory. For a full breakdown of Seabridge's Mineral Reserves and Mineral Resources by category please visit the Company's website at http://www.seabridgegold.com.

Neither the Toronto Stock Exchange, New York Stock Exchange, nor their Regulation Services Providers accepts responsibility for the adequacy or accuracy of this release.

Forward Looking Statements

This document contains "forward-looking information" within the meaning of Canadian securities legislation and "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. This information and these statements, referred to herein as "forward-looking statements" are made as of the date of this document. Forward-looking statements relate to future events or future performance and reflect current estimates, predictions, interpretations, expectations or beliefs regarding future events and include, but are not limited to, statements with respect to: (i) the decision opening opportunities for faster advancement of the KSM Project; (ii) KSM's large copper reserve being able to contribute to meeting North America's technology, defense, and security objectives while also promoting the economic wellbeing of our Indigenous partners; and (iii) the decision providing the regulatory assurance needed to support joint venture discussions for the KSM Project.

All forward-looking statements are based on Seabridge's or its consultants' current beliefs as well as various assumptions made by them and information currently available to them. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.

Forward-looking statements involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Seabridge's plans or expectations include the risk that: (i) the opportunities for the faster advancement of the KSM Project may not materialize; (ii) the KSM Project does not ultimately go into production; (iii) other factors may result in potential joint venture partners not favourably concluding joint venture discussions, and other risks outlined in statements made by Seabridge from time to time in the filings made by Seabridge with securities regulators. Seabridge disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as otherwise required by applicable securities legislation.

We caution readers not to place undue reliance on these forward-looking statements as a number of important factors could cause the actual outcomes to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates assumptions and intentions expressed in such forward-looking statements.

ON BEHALF OF THE BOARD
"Rudi Fronk"
Chairman & C.E.O.

For further information please contact:
Rudi P. Fronk, Chairman and C.E.O.
Tel: (416) 367-9292 • Fax: (416) 367-2711
Email: info@seabridgegold.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/217820

FAQ

What designation did Seabridge Gold (NYSE: SA) receive for its KSM Project?

Seabridge Gold received a 'substantially started' designation from the BC Government for its KSM Project, affirming the validity of the BC Environmental Assessment Certificate for the project's lifetime.

How much has Seabridge Gold (NYSE: SA) invested in the KSM Project?

Seabridge Gold has invested over $1 billion in the KSM Project since 2001, with more than $800 million spent after receiving the Environmental Assessment Certificate in July 2014.

What is the significance of the 'substantially started' designation for Seabridge Gold's (NYSE: SA) KSM Project?

The designation affirms the validity of the Environmental Assessment Certificate for the project's lifetime, overriding the original July 29, 2026 expiry date and providing regulatory assurance for potential joint venture discussions.

How does the KSM Project contribute to North America's critical mineral supply chain?

The KSM Project's large copper reserve can contribute to meeting North America's technology, defense, and security objectives by supporting the development of a stronger critical mineral supply chain.